Decreases in all rate groups for 2012
Yukon employers will see a decrease in assessment rates for all groups in 2012, according to the Yukon Workers’ Compensation Health and Safety Board (YWCHSB).
Improving safety practices and return to work outcomes for injured workers are contributing to the prevention of disabilities. These are the key factors that led to the board’s decision to lower rates, according to the YWCHSB.
The board was able to lower the amount of administration costs within the average assessment rate for 2012 to $1.04 from $1.10 in 2011. This also contributed to the board’s decision to set the average target assessment rate for 2012 at $2.39 compared to $2.49 in 2011.
Specific assessment rates are established based on an actuarial analysis of claims costs and assessable payroll. Strong economic growth in Yukon in 2011 has led to year-end projected numbers of about 600 additional employers and about 2,600 more workers in 2011 compared to 2010. Despite these increases, the lost-time injury rate is expected to remain constant or lower than the 2010 rate of about 2.2 per 100 covered workers, according to the YWCHSB.
The nine rate groups will receive rate decreases ranging from five per cent to 22 per cent, with an average decrease for all industry groups of 13.4 per cent.
Based on a downward trend of claims costs, Industry 312, the public accommodations and service industry, is being moved from a high services rate group to a medium services rate group. Employers in this industry will see their rate drop from a 2011 level of $3.06 per $100 of payroll to $1.61 in 2012, a 47 per cent decrease.
Medium and high construction rate groups are each receiving a rate decrease of 22 per cent. These decreases are possible because of the construction industry’s improved claims experience along with growth in safe work practices, through more involvement with the Certificate of Recognition (COR) program. This industry has also demonstrated improved return to work outcomes for injured workers, according to the YWCHSB.
Employers that have a COR automatically get a 10 per cent credit on their assessment premiums up to a maximum of $25,000. Non-certified employers can receive assessment credits ranging from four per cent to six per cent.
